The global tech world was shaken earlier this year when Chinese startup DeepSeek launched its low-cost R1 large language model, built with less powerful chips yet competitive with multi-billion-dollar models from US giants. The move raised eyebrows—and questions—about why India still lacks an AI model like DeepSeek or ChatGPT of its own, even as its tech talent continues to shine globally.
While India has seen a boom in startups, critics have pointed out the lack of cutting-edge innovation, especially in AI, machine learning, and robotics. Social media has been abuzz with comparisons between Indian ventures and their American and Chinese counterparts. Amidst this scrutiny, Zepto CEO Aadit Palicha jumped into the conversation, offering a stark reality check on what’s really holding India back.
In a post on X, Zepto CEO said India’s struggle to produce foundational AI models stems from a deeper issue—the absence of large-scale, profitable internet companies. In contrast, US and Chinese giants like Amazon, Google, Facebook, Tencent, and Alibaba began as consumer internet companies, eventually evolving into global tech powerhouses by leveraging vast amounts of data, talent, and capital.
Palicha emphasized that while it’s easy to criticize Indian startups for not matching the deep tech capabilities of the US and China, companies like Zepto have made significant contributions within a short span. Launched just 3.5 years ago, Zepto now supports around 1.5 lakh livelihoods, contributes over Rs 1,000 crore in taxes annually, and has attracted more than a billion dollars in foreign investment. The company has also pumped hundreds of crores into modernizing India's fragmented backend supply chains, he said.
Palicha admits Zepto has a long way to go before becoming a globally competitive internet company, but he remains committed to reinvesting profits into innovation that can drive long-term value for India’s digital economy. With India's startup ecosystem still in its adolescence, he argues that the focus must shift towards building resilient, capital-generating internet champions—only then can India hope to lead the next global tech revolution.
India vs China startups
Recently Zoho's founder Sridhar Vembu had shared an infographics on X comparing Indian and Chinese startup ecosystems. It presents a critical perspective on how startups in both countries are evolving, highlighting key differences in priorities.
The comparison suggests that while Indian startups are focusing on consumer-driven models like food delivery, grocery apps, and influencer-driven entertainment, Chinese startups are investing in deep-tech innovations such as EVs, AI, semiconductors, and robotics. The graphic implies that India’s startup culture leans towards convenience and entertainment, whereas China is building a foundation for global dominance in advanced technology and infrastructure.
What Piyush Goyal said
Echoing similar sentiments, Commerce and Industry Minister Piyush Goyal urged Indian startups to think beyond instant delivery and ice cream ventures, and focus on high-tech domains like semiconductors, robotics, AI, and next-gen manufacturing. Speaking at the recent Startup Mahakumbh event, Goyal highlighted the need to channel more domestic capital into future-focused innovation, warning against becoming merely a service economy for foreign players. He emphasized that startups must evolve, compete, and prepare India for the industries of the future.
Founded in 2021 by a then 17-year-old Palicha, Zepto started as a bold experiment during the pandemic. With a background in computer science and a brief stint at Stanford University, he dropped out to build something meaningful in India. Zepto’s first warehouse opened in Mumbai’s Bandra—and today, it boasts a network of dark stores, 50,000+ delivery partners, and operations in multiple cities.
While India has seen a boom in startups, critics have pointed out the lack of cutting-edge innovation, especially in AI, machine learning, and robotics. Social media has been abuzz with comparisons between Indian ventures and their American and Chinese counterparts. Amidst this scrutiny, Zepto CEO Aadit Palicha jumped into the conversation, offering a stark reality check on what’s really holding India back.
In a post on X, Zepto CEO said India’s struggle to produce foundational AI models stems from a deeper issue—the absence of large-scale, profitable internet companies. In contrast, US and Chinese giants like Amazon, Google, Facebook, Tencent, and Alibaba began as consumer internet companies, eventually evolving into global tech powerhouses by leveraging vast amounts of data, talent, and capital.
Palicha emphasized that while it’s easy to criticize Indian startups for not matching the deep tech capabilities of the US and China, companies like Zepto have made significant contributions within a short span. Launched just 3.5 years ago, Zepto now supports around 1.5 lakh livelihoods, contributes over Rs 1,000 crore in taxes annually, and has attracted more than a billion dollars in foreign investment. The company has also pumped hundreds of crores into modernizing India's fragmented backend supply chains, he said.
It is easy to criticise consumer internet startups in India, especially when you compare them to the deep technical excellence being built in US/China. Using our example, the reality is this: there are almost 1.5 Lakh real people who are earning livelihoods on Zepto today - a…
— Aadit Palicha (@aadit_palicha) April 3, 2025
Palicha admits Zepto has a long way to go before becoming a globally competitive internet company, but he remains committed to reinvesting profits into innovation that can drive long-term value for India’s digital economy. With India's startup ecosystem still in its adolescence, he argues that the focus must shift towards building resilient, capital-generating internet champions—only then can India hope to lead the next global tech revolution.
India vs China startups
Recently Zoho's founder Sridhar Vembu had shared an infographics on X comparing Indian and Chinese startup ecosystems. It presents a critical perspective on how startups in both countries are evolving, highlighting key differences in priorities.
I got this image forwarded - on India vs China startup ecosystems.
— Sridhar Vembu (@svembu) April 1, 2025
China does all the things India does (Fintech, edtech ..) but China also invests in deep tech. We have to deepen our tech.
That awareness is spreading so I am optimistic it will happen. pic.twitter.com/A1opiZa9Fo
The comparison suggests that while Indian startups are focusing on consumer-driven models like food delivery, grocery apps, and influencer-driven entertainment, Chinese startups are investing in deep-tech innovations such as EVs, AI, semiconductors, and robotics. The graphic implies that India’s startup culture leans towards convenience and entertainment, whereas China is building a foundation for global dominance in advanced technology and infrastructure.
What Piyush Goyal said
Echoing similar sentiments, Commerce and Industry Minister Piyush Goyal urged Indian startups to think beyond instant delivery and ice cream ventures, and focus on high-tech domains like semiconductors, robotics, AI, and next-gen manufacturing. Speaking at the recent Startup Mahakumbh event, Goyal highlighted the need to channel more domestic capital into future-focused innovation, warning against becoming merely a service economy for foreign players. He emphasized that startups must evolve, compete, and prepare India for the industries of the future.
Founded in 2021 by a then 17-year-old Palicha, Zepto started as a bold experiment during the pandemic. With a background in computer science and a brief stint at Stanford University, he dropped out to build something meaningful in India. Zepto’s first warehouse opened in Mumbai’s Bandra—and today, it boasts a network of dark stores, 50,000+ delivery partners, and operations in multiple cities.
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